The attorney tells E! News any suggestion that Lutfi is suing former pal Britney Spears and her family to pay off his debts and prevent foreclosure on his home is false.

“It’s nonsense,” Freedman says. “The homeowners association misplaced two checks. The checks were paid. This is just more lies and misrepresentation about a guy who is a great caring human being.”

Well, that's not entirely true...

E! News has obtained a copy of a county tax record confirming that Lutfi's West L.A. condo is in preforeclosure. The record reveals that Brit's ex-manager received a notice of default in November 2008 after getting behind in his mortgage payments. Currently, Lutfi owes $18,508 on his 3,3398-square foot, three-bedroom, five-bathroom condo.

Freedman says his client still cares about Spears and only named her in the defamation lawsuit he filed Tuesday for procedural purposes.

“The real people denying payment have been the conservatorship,” claims Freedman.

As for the restraining order against him, Freedman says Lutfi hasn’t been contacting Britney, but the opposite may be the case.

“It seems to me maybe [the conservators] should be worried about people contacting Sam instead of Sam contacting her.”

Freedman also claims it is Spears' parents Jamie and Lynne who look to do Britney harm and not Lutfi.

“Why would a supposedly loving mother write a tell-all about the sordid details of the two worst nights of her daughter's life for a profit,” questions the lawman. “And why would a father, who claims his daughter is incompetent, send her on a massive tour when she can’t even manage her own affairs?”

Freedman says the lawsuit will likely go to court and Brit-Brit’s parents will have to face those questions.

“It just doesn’t make sense unless there’s some sort of motive,” says Freedman. “At the end of the day, I think there is going to be a trial to determine credibility.”

No word yet when Lutfi's condo could turn into a foreclosure, but a local realtor tells E! News it is up to the mortgage lender to decide.